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Newfoundland oil play


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Starting a thread on Newfoundland oil plays, as one particularly interests me. Although there are several others that may come to the fore or someone else may wish to mention.

 

Following a little persuasion from someone else i've mentioned it to a few weeks back (who may be will chip in) going to flag up this one.

 

ENEGI OIL http://www.enegioil.com/operations/introduction

 

These came to my attention a few months back following an upbeat AGM suggesting a change in fortunes. My reluctance for putting them up before is simple on 2 counts. Firstly the drill success requires ACID FRAC work being done and if thats not all both Hunt oil and their former partner CQV have previously failed on the same well, so will it be first time lucky. Add to that it's an AIM stock, natural reluctance to get too carried away.

 

However, anyone who read my comments on Mart will know i've mentioned it several times(well on the ADVFN thread) and i've been accumulating since the lows earlier in the year as it seems everything they have said since the AGM seems to be falling into place. Most importantly they have patiently awaited for their FRAC expert, who I believe has something like a 97% success rate to carry out the work.

 

The sole broker following them as not really helped of late and no success as yet has been priced in to their coverage; so along with their own frustrated efforts, it all added to a continuous share price slide last year. Enough comment exists on bulletin boards and it is a bit of a leaky ship, so i'll not put any links to any, other than to say there is plenty out there for rumour, trivia or general ramping :lol: All ENEG have to do though is show some success and get a reasonable flow rate of say 600 barrels a day (their oil is also high quality) and it would put the previous broker estimates to shame, as well as not taking them long to become debt free.

 

CQV have already updated the market with figures and ENEG could soon massively upgrade reserves on el7050. Then there is Shoal point. To be honest to go any further sounds like blatant ramping, so all i'll say is these once touched highs of £1.87p (not that long ago) and even allowing for a little dilution since, the current mid price of 23.75p has a good risk/reward for me and i'm already loaded up, possibly too much so :rolleyes:

 

One other thing is obvious, despite seemingly few shares in free float, ENEG is very volatile; so as the saying goes maybe not for widows and orphans.

 

Riggers

D.Y.O.R......... Expecting news on several fronts very soon ;)

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  • 4 weeks later...

This one disappointing me. Begin to wonder what impact a stalled Frac operation will mean and now with RRF selling down their holding :angry:

 

So i've opted for taking a very reduced position as my profit was seriously getting eroded. :( So until it's clearer weakness of late is a concern, time to go back to drawing board.

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  • 1 month later...
Following a little persuasion from someone else i've mentioned it to a few weeks back (who may be will chip in) going to flag up this one.

 

ENEGI OIL http://www.enegioil.com/operations/introduction

 

Er yeah, other person would be me :lol:

 

Not much to say on this one other than I liked the look of its prospective / oil blocks. Have been in and out of this one.

 

I see the share price has picked up of late ie since April 2010 Not sure if that is courtesy of the general market or if the idea of frontier drilling is now turning on investors. Thinking here of the Falklands and of course CAIRN in Greenland - now I know Newfoundland is a different place but maybe the market was getting excited on the back of ?? The ADVN BB is fairly busy on this one as someone on here knows.

 

The 16aug2010 farm in RNS news seems to be completely missed by the google finance page

 

http://www.enegioil.com/support/uploads/12...AL%20160810.pdf

 

 

Anyway I spot some news which seems to have damaged the share price over the last day or so

 

http://www.reuters.com/finance/stocks/keyD...=20100908082700

 

Enegi Oil Plc announced that shares issued by the Company are being delisted from the Bourse De Luxembourg effective September 9, 2010. This decision has been made due to there being no trading volume on the Bourse De Luxembourg for the shares in the Company since listing in March 2008. Shareholders have been solely using the AIM market for trading in the Company's shares. The Company will remain listed on the AIM Market in London

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Fancy that ;):lol:

 

As someone here doesn't know, have you seen it confirmed anywhere officially the FRAC work has started, when it will start? :unsure: Nope? Me neither.

 

As for financial implications hmm then delisting on Luxembourg hmm

 

Do still believe in prospects and CVQ might be worth keeping an eye on, but for disclosure made smaller gains than i'd anticipated and i'm sitting on the sidelines at present.

 

EDIT: PM replied

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